Financial Setup

The Invoicing Method  is a Required field ().The user selects the Invoicing Method by Left Clicking on the Appropriate Radio Button  (  ).

 

Understanding the two different Income Accounting Methods

 

Officially, there are two types of accounting methods, which dictate how the school records their debtor (Customer) transactions in the financial books:

 

Direct Income method of accounting

 

In Direct Income accounting, the schools record their expenses in financial accounts when they pay for the specific expense, and they book revenue (income) when they Invoice the customer (learner).

 

This results in a huge profit because the revenue reflected is only expected income and not the actual payments received.

 

In summary, it is actual expenses against expected income.

 

Provision method of accounting

 

If a school uses Provision accounting, it records revenue when:

 

1.     The actual transaction (invoice) is completed.

2.     The customer (parent) pays the invoice.

 

The outstanding invoices will stay in the provision account until it has been paid or written off.

 

This result is an Income statement that reflects actual income against actual expenses for the period.

 

Key Difference between the two different Income Accounting Methods

 

The key difference between the two types is how the school records incoming cash versus payments made.

 

 

The Accumulated Earnings Account is a  system generated account and thus pre-populated and may be changed (NOT RECOMENDED) by the user.

The Accumulated Earnings Account is a Required field ().The user selects the Cash Control Account by Left Clicking on the Drop Down List Box (). When this is done a list of available Accumulated Earnings Accounts will be displayed. Should the user not Select  a  Cash Control Account  and attempts to Save () the information the system will give an indication  () that this is compulsory information.

Select the applicable Accumulated Earnings Account by Left Clicking on it in the list. Should the user want to enter a New Accumulated Earnings Account, it is done by Left Clicking on the Add  Button (). When this is done the Add Account Page will be displayed (Refer to Add Account).

 

The Opening Balance Account is a  system generated account and thus pre-populated and may be changed (NOT RECOMENDED) by the user.

The Opening Balance Account is a Required field ().The user selects the Opening Balance Account by Left Clicking on the Drop Down List Box (). When this is done a list of available Opening Balance Accounts will be displayed. Should the user not Select  a  Opening Balance Account  and attempts to Save () the information the system will give an indication  () that this is compulsory information.

 

Select the applicable Opening Balance Account by Left Clicking on it in the list. Should the user want to enter a New Opening Balance Account, it is done by Left Clicking on the Add  Button (). When this is done the Add Account Page will be displayed (Refer to Add Account).

 

 

The Cash Control Account is a  system generated account and thus pre-populated and may be changed (NOT RECOMENDED) by the user.

The Cash Control Account is a Required field ().The user selects the Cash Control Account by Left Clicking on the Drop Down List Box (). When this is done a list of available Cash Control Accounts will be displayed. Should the user not Select  a  Cash Control Account  and attempts to Save () the information the system will give an indication  () that this is compulsory information.

Select the applicable Cash Control Account by Left Clicking on it in the list. Should the user want to enter a New Cash Control Account, it is done by Left Clicking on the Add  Button (). When this is done the Add Account Page will be displayed (Refer to Add Account).

 

 

 

The Discount Granted Account is a  system generated account and thus pre-populated and may be changed (NOT RECOMENDED) by the user.

The Discount Granted Account is a Required field ().The user selects the Discount Granted Account by Left Clicking on the Drop Down List Box (). When this is done a list of available Discount Granted Accounts will be displayed. Should the user not Select  a  Discount Granted Account  and attempts to Save () the information the system will give an indication  () that this is compulsory information.

 

Select the applicable Discount Granted Account by Left Clicking on it in the list. Should the user want to enter a New Discount Granted Account, it is done by Left Clicking on the Add  Button (). When this is done the Add Account Page will be displayed (Refer to Add Account).

 

The Discount Received Account is a  system generated account and thus pre-populated and may be changed (NOT RECOMENDED) by the user.

 

The Discount Received Account is a Required field ().The user selects the Discount Received Account by Left Clicking on the Drop Down List Box

(). When this is done a list of available Discount Received Accounts will be displayed. Should the user not Select  a  Discount Received  Account  and attempts to Save () the information the system will give an indication  () that this is compulsory information.

 

Select the applicable Discount Received  Account by Left Clicking on it in the list. Should the user want to enter a New Discount Received Account, it is done by Left Clicking on the Add  Button (). When this is done the Add Account Page will be displayed (Refer to Add Account).

 

The Business Unit Transfer Account is a  system generated account and thus pre-populated and may be changed (NOT RECOMENDED) by the user.

 

The Business Unit Transfer Account is a Required field ().The user selects the Business Unit Transfer  Account by Left Clicking on the Drop Down List Box

(). When this is done a list of available Business Unit Transfer Accounts will be displayed. Should the user not Select  a Business Unit Transfer Account  and attempts to Save () the information the system will give an indication  () that this is compulsory information.

 

Select the applicable Business Unit Transfer Account by Left Clicking on it in the list. Should the user want to enter a New Business Unit Transfer Account, it is done by Left Clicking on the Add  Button (). When this is done the Add Account Page will be displayed (Refer to Add Account).

The Interest Charged Account is a  system generated account and thus pre-populated and may be changed (NOT RECOMENDED) by the user.

 

The Interest Charged Account is a Required field ().The user selects theInterest Charged Account by Left Clicking on the Drop Down List Box

(). When this is done a list of available Interest Charged Accounts will be displayed. Should the user not Select  a Interest Charged Account  and attempts to Save () the information the system will give an indication  () that this is compulsory information.

 

Select the applicable Interest Charged Account by Left Clicking on it in the list. Should the user want to enter a New Interest Charged Account, it is done by Left Clicking on the Add  Button (). When this is done the Add Account Page will be displayed (Refer to Add Account).

When all information has been entered the Financial Setup is saved by Left Clicking on the Save Button (). Should the user want to Cancel the Add Action, Left Click on the Cancel Button ().